I am trying to work out the best thing to get m6 score up so I can apply for a mortgage

[Guest]

I haven’t been the best with money over the years. I have a settled CCJ that is due off my file in March next year and I have credit cards maxed but I pay them on time each month. I have come into a some money which could pay the cards off (just).

My credit rating is currently stable, will my score drop when I pay everything off and will it go up in March once the CCJ drops off?

I am trying to work out the best thing to get m6 score up so I can apply for a mortgage.

[Marg]

Personally I would pay all the cards off. I would then use the cards to pay/buy my weekly/monthly goods/services BUT within my income limits then pay them off each month in full. I believe that that will improve your score but I'm by no means a financial expert.

[Elizabeth]

When we applied for our first mortgage we were told that the credit score didn't really matter.

They were more interested in how we handled money in general and what our affordability was. I had a maxed card that I paid off just before application and a small personal loan that was to continue through the first year of mortgage and they were fine with that.

We were advised to watch where we spent money on our debit cards as it would show on statements ie gambling, frivolous shopping etc.

Don't miss: We have no money after paying our mortgage and utility bills

[Liz]

My rating never went up by much when my ccj came off and you need credit to get a good credit rating. You need to show that you can use the credit responsibly if that makes sense.

[Rebekah]

How soon are you looking to mortgage as they will look at your cards and even though you have or will have cleared them they have been maxed. Its not just the score number they look at it's how you have used your credit (main thing that determines mortgage terms).

Your score will raise as CCJ drops but not a lot if its nearly spent now the main effect on your score is over the first 4 years ( on the numbers side anyway especiallyif ccj is satisfied).

The active measures you have taken will show and that's a bonus but well used, promptly repaid credit is best to build with fast xx

Each credit reference agency will also show different things and scores.

Check my file is a good overall view as its all major agencies in 1 place xx

Good luck with the house hunt! X

[James]

Thinking the credit card rates are high, I wouldn’t worry about my credit score, get the things paid off, and begin saving for a down payment until the mortgage rates fall.

Carrying high rate debt is never a good thing. Sounds like you’re on the right track.

Best of luck.

Explore these too: Can I add a partner to my mortgage when I remortgage? Is it simple enough to do?

[Amy]

I paid my credit card off in one hit when I got a lump sum and my credit rating plummeted. Given the chance again I would pay it off bit by bit.

Having said that I did just get a mortgage (3 years after clearing it) and it wasn't mentioned although they put a special clause in that all credit had to be 0 at completion (we were using the credit card to do food shops and paying it off in full each month to build our credit for the mortgage).